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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103779-103780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30303]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-045, C-570-046]

1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's 
Republic of China: Initiation of Circumvention Inquiry of the 
Antidumping and Countervailing Duty Orders

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to a request from Compass Chemical International 
LLC (Compass, a domestic interested party), the U.S. Department of 
Commerce (Commerce) is initiating a country-wide circumvention inquiry 
to determine whether imports of 1-Hydroxyethylidene-1, 1-Diphosphonic 
Acid (HEDP) from the People's Republic of China (China), which has been 
altered in form or appearance in minor respects, are circumventing the 
antidumping duty (AD) and countervailing duty (CVD) orders.

DATES: Applicable December 19, 2024.

FOR FURTHER INFORMATION CONTACT: Charles Vannatta or Tyler O'Daniel; 
Office of Policy, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4036 or (202)-482-6030, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 4, 2024, pursuant to section 781(c) of the Tariff Act of 
1930, as amended (the Act), and 19 CFR 351.226(j), Compass filed a 
circumvention inquiry request alleging that solid or powdered acidic 
HEDP produced in China and exported to the United States constitutes 
merchandise altered in form or appearance in minor respects that is 
circumventing the Orders,\1\ and, accordingly, should be included 
within the scope of the Orders.\2\ On October 30, 2024, we issued a 
request for additional information to Compass,\3\ because we had found 
that Compass' request to conduct a circumvention inquiry was 
insufficient for purposes of initiation, in accordance with 19 CFR 
351.226(d)(1). Additionally, we stated that 30-day period for Commerce 
to consider whether to initiate on Compass' circumvention inquiry 
request would begin with Compass' response to the request for 
information.\4\ Subsequently, on November 13, 2024, Compass filed its 
response to our request for information.\5\ Thus, we consider the 
circumvention inquiry request to have been filed on November 13, 2024.
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    \1\ See 1-Hydroxyethylidene-1, 1-Diphosphonic Acid From the 
People's Republic of China: Amended Final Determination of Sales at 
Less Than Fair Value, and Antidumping Duty Order, 82 FR 22807 (May 
18, 2017); see also 1-Hydroxyethylidene-1, 1-Diphosphonic Acid from 
the People's Republic of China: Countervailing Duty Order, 82 FR 
22809 (May 18, 2017) (collectively, Orders).
    \2\ See Compass's Letter, ``Request for an Anticircumvention 
Inquiry Pursuant to Section 781(c) of the Act,'' dated October 4, 
2024.
    \3\ See Commerce's Letter, ``Supplemental Questionnaire,'' dated 
October 30, 2024.
    \4\ Id.
    \5\ See Compass's Letter, ``Request for an Anticircumvention 
Inquiry Pursuant to Section 781(c) of the Act; Response to 
Supplemental Questionnaire,'' dated November 13, 2024.
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Scope of the Orders

    The merchandise covered by the Orders includes all grades of 
aqueous acidic (non-neutralized) concentrations of 1-hydroxyethylidene-
1, 1-disphosphonic acid (HEDP), also referred to as 
hydroxyethylidenendiphosphonic acid, hydroxyethanediphosphonic acid, 
acetodiphosphonic acid, and etidronic acid. The Chemical Abstract 
Service (CAS) registry number for HEDP is 2809-21-4.
    The merchandise subject to the Orders is currently classified in 
the Harmonized Tariff Schedule of the United States (HTSUS) at 
subheading 2931.90.9043. It may also enter under HTSUS subheadings 
2811.19.6090, 2931.90.9041, 2931.90.9051, 2811.19.6190, 2931.39.0018 
and 2931.49.0050. While HTSUS subheadings and the CAS registry number 
are provided for convenience and customs purposes only, the written 
description of the scope of the Orders is dispositive.

Merchandise Subject to the Circumvention Inquiry

    The merchandise covered by this circumvention inquiry includes all 
grades of acidic (non-neutralized) concentrations of 1-
hydroxyethylidene-1, 1-diphosphonic acid (HEDP), also referred to as 
hydroxyethylidenendiphosphonic acid, hydroxyethanediphosphonic acid, 
acetodiphosphonic acid, and etidronic acid, in solid or powder form, 
produced in China and exported to the United States. The CAS registry 
number for solid acidic HEDP is 2809-21-4. The solid or powder form of 
acidic HEDP subject to this request is typically entered into the 
United States under HTSUS subheadings 2931.49.0080, 2931.90.9052 and 
2811.19.6190.

Statutory and Regulatory Framework for Initiation of Circumvention 
Inquiry

    Section 351.226(d)(1)(ii) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested party supporting these allegations.'' Compass alleges 
circumvention pursuant to section 781(c) of the Act (i.e., merchandise 
altered in form or appearance in minor respects).
    Section 781(c)(1) of the Act provides that the class or kind of 
merchandise subject to an AD or CVD order shall include articles that 
have been ``altered in form or appearance in minor respects . . . 
whether or not included in the same tariff classification.'' Section 
781(c)(2) of the Act provides an exception that section 781(c)(1) of 
the Act ``shall not apply with respect to altered merchandise if the 
administering authority determines that it would be unnecessary to 
consider the altered merchandise within the scope of the 
{order{time} .'' Concerning the allegation of minor alterations under 
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider 
criteria

[[Page 103780]]

including, but not limited to: (1) Overall physical characteristics of 
the merchandise; (2) expectations of ultimate users; (3) use of the 
merchandise; (4) channels of marketing; and (5) cost of any 
modification relative to the value of the imported products.
    In accordance with 19 CFR 351.226(m)(2), for companion AD and CVD 
proceedings, ``the Secretary will initiate and conduct a single inquiry 
with respect to the product at issue for both orders only on the record 
of the antidumping proceeding.'' Further, once ``the Secretary issues a 
final circumvention determination on the record of the AD proceeding, 
the Secretary will include a copy of that determination on the record 
of the CVD.'' Accordingly, once Commerce concludes this circumvention 
inquiry, Commerce intends to place its final circumvention 
determination on the record of the companion CVD proceeding.

Analysis

    After analyzing the record evidence and Compass' allegation, we 
determine that the circumvention request satisfies the requirements of 
19 CFR 351.226(c) and that there is sufficient information to warrant 
initiation of a circumvention inquiry based on minor alterations, 
pursuant to section 781(c) of the Act and 19 CFR 351.226(j). For a full 
discussion of the basis for our decision to initiate a circumvention 
inquiry, see the Initiation Checklist.\6\
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    \6\ See Initiation Checklist, ``Initiation of the Circumvention 
Inquiry on the Antidumping and Countervailing Duty Orders,'' dated 
concurrently with, and hereby adopted by, this notice (Initiation 
Checklist).
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    As explained in the Initiation Checklist, the information provided 
by Compass also warrants initiating this circumvention inquiry on a 
country-wide basis. Commerce has taken this approach in prior 
circumvention inquiries, where the facts warranted initiation on a 
country-wide basis.\7\
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    \7\ See, e.g., Aluminum Extrusions from the People's Republic of 
China: Affirmative Final Determination of Circumvention of the 
Antidumping and Countervailing Duty Orders and Rescission of Minor 
Alterations Anti-Circumvention Inquiry, 82 FR 34630 (July 26, 2017), 
and accompanying Issues and Decision Memorandum at Comment 4; see 
also Hydrofluorocarbon Blends from the People's Republic of China: 
Initiation of Circumvention Inquiry on the Antidumping Duty Order, 
88 FR 74150 (October 30, 2023); Hydrofluorocarbon Blends from the 
People's Republic of China: Initiation of Circumvention Inquiries on 
the Antidumping Duty Order, 88 FR 43275 (July 7, 2023).
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Respondent Selection

    Commerce intends to base respondent selection on U.S. Customs and 
Border Protection (CBP) data. Commerce intends to place the CBP data on 
the record within five days of the publication of this initiation 
notice. Comments regarding the CBP data and respondent selection should 
be submitted within seven days after placement of the CBP data on the 
record of the inquiry.
    Commerce intends to establish a schedule for questionnaire 
responses after respondent selection. A company's failure to completely 
respond to Commerce's requests for information may result in the 
application of facts available, pursuant to section 776(a) of the Act, 
which may include adverse inferences, pursuant to section 776(b) of the 
Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce intends to notify CBP of 
this initiation and direct CBP to continue the suspension of 
liquidation of entries of products subject to this circumvention 
inquiry that are already subject to the suspension of liquidation under 
the Orders and to apply the cash deposit rates that would be applicable 
if the products were determined to be covered by the scope of the 
Orders. Should Commerce issue affirmative preliminary or final 
circumvention determinations, Commerce will follow the suspension of 
liquidation rules under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(c) of the Act, 
Commerce determines that Compass' request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce 
is notifying all interested parties of the initiation of this 
circumvention inquiry to determine whether solid or powdered acidic 
HEDP produced in, and exported from, China are circumventing the 
Orders. We have included a description of the products that are the 
subject to this inquiry and an explanation of Commerce's decision to 
initiate this inquiry as provided in the accompanying Initiation 
Checklist.\8\ In accordance with 19 CFR 351.226(e)(1), Commerce intends 
to issue its preliminary circumvention determination no later than 150 
days from the date of publication of the notice of initiation of this 
circumvention inquiry in the Federal Register.
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    \8\ See Initiation Checklist.
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    This notice is published in accordance with section 781(c) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: December 13, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2024-30303 Filed 12-18-24; 8:45 am]
BILLING CODE 3510-DS-P
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